Alikhan Smailov instructed to submit the decision on gas supply to northern and eastern regions by Sep. 1

The issue of gas supply to the country's settlements was discussed at the government session chaired by the Prime Minister of the Republic of Kazakhstan Alikhan Smailov. Minister of Energy Bolat Akchulakov, Chair of SWF Samruk-Kazyna JSC Almasadam Satkaliyev, akims of Nur-Sultan and West Kazakhstan region presented their reports.

According to the head of the Ministry of Energy, at the end of last year, the level of gas supply in Kazakhstan amounted to 57.67% of the population. Gasification of the country is carried out in accordance with the General Scheme for 2015-2030.

The Prime Minister noted that over the past 5 years, gas consumption in the domestic market has increased by 35%. Last year alone, more than 3,600 industrial facilities were converted to natural gas.

“Consumption is expected to rise to 20 billion cubic meters this year. The number of gasified settlements will be over 1,700. Thus, more than 11 million Kazakhstanis will have access to natural gas,” Smailov said.

The Prime Minister stressed that the gas industry is demonstrating sustainable growth and occupies an important place in the socio-economic development of the country.

“The growing needs of the population and industry require the availability of sufficient volumes of gas. Therefore, the expansion of the resource base, including large-scale exploration work, should be a key task,” the head of the Cabinet of Ministers noted.

In his opinion, this is also important for potential investors, whose entry into the market is largely due to the availability of raw materials, especially gas.

In this regard, the relevant departments were instructed to develop a final package of regulatory and fiscal preferences for gas projects by June 15 as part of the development of the Improved Model Contract.

Alikhan Smailov also noted that the further development of the industry directly depends on the level and condition of the gas transmission system. Today, gas pipelines operate at maximum capacity and many of them require major repairs. Taking this into account, the Prime Minister instructed to submit to the Government by July 1 an updated draft of the General Scheme for Gasification of the Regions until 2030.

“There should be a clear plan for the construction of new facilities, modernization and repair of existing ones,” the head of government emphasized.

In addition, in accordance with the instruction of the Head of State, a search is underway for an optimal solution to the issue of gasification of the northern and eastern regions of the country.

“Two options are being worked out - from Russian sources and through the Sary-Arka gas pipeline. This issue is important and cannot be dragged out,” said Alikhan Smailov.

In this regard, the Ministry of Energy, together with the relevant akims and the Samruk-Kazyna fund, until Sep. 1, 2022, instructed to conduct a comprehensive assessment of the options under consideration and make an agreed decision.

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